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(NPR)   Hey, you know how "microfinance" was going to save the Third World? Yeah, it got taken over by scumbag companies that charge the poor outrageous interest rates and use collection practices so harsh it's driven some to suicide   (npr.org) divider line 183
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4993 clicks; posted to Business » on 31 Dec 2010 at 10:22 PM (3 years ago)   |  Favorite    |   share:  Share on Twitter share via Email Share on Facebook   more»



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2010-12-31 08:03:53 PM
That's still happening here in the First World too, subby. They're called "payday loan companies".
 
2010-12-31 08:09:48 PM
It is called vulture funds. Massah representative tickler had part in some as well as Vitter. It is disgusting actually.
 
2010-12-31 08:15:46 PM
Their example shows someone with no plan to pay back the first loan getting a second loan to pay back the first. Yeah... real sympathetic to that sort of dumbassery.
 
2010-12-31 08:34:51 PM
I was in Microloans, a couple of years ago. I was given a bio, business plan and other information. Kinda cool to watch a few dollars mean a whole lot in Africa to a single woman with ambition. She built a solar oven for bread.
 
2010-12-31 08:48:53 PM
Capitalism at it's best!
 
2010-12-31 08:54:51 PM
It has been a long time since any bankers found their heads on pikes along the highway. So why wouldn't they do these sorts of things? They can so they do.
 
2010-12-31 08:56:04 PM
It all depends on who is administering the loan. I give through Kiva.org to indigenous women in Guatemala. You can check out the org that are in charge of the loan in country and if you don't like them, put your money elsewhere. It's still a good way to get money to folks that need it
 
2010-12-31 08:59:52 PM
Hollie Maea: It has been a long time since any bankers found their heads on pikes along the highway.

I see a niche market opening soon if the economy gets worse. I'll go invest in Tar, Feather, and Pointed Stakes.
 
2010-12-31 08:59:59 PM
liveindia.tv

Not amused.
 
2010-12-31 09:10:53 PM
RobertBruce: Their example shows someone with no plan to pay back the first loan getting a second loan to pay back the first. Yeah... real sympathetic to that sort of dumbassery.

Reel em in! Google vulture funds/loans.
 
2010-12-31 09:15:27 PM
brief description (new window)
 
2010-12-31 09:33:21 PM
This is why we can't have nice things.
 
2010-12-31 09:35:46 PM
What's to repossess if the loan goes bad?

The warfare? The famine? The lack of sewer systems? The unfair economic practices supported by the first world?
 
2010-12-31 09:55:07 PM
Snarcoleptic_Hoosier: What's to repossess if the loan goes bad?

The warfare? The famine? The lack of sewer systems? The unfair economic practices supported by the first world?


Snarcoleptic_Hoosier: What's to repossess if the loan goes bad?

The warfare? The famine? The lack of sewer systems? The unfair economic practices supported by the first world?


free labor. get it.
 
2010-12-31 10:18:48 PM
doglover: I see a niche market opening soon if the economy gets worse. I'll go invest in Tar, Feather, and Pointed Stakes.

No, they are safe. They have convinced everyone that it's the government's fault that they stole all their money.
 
2010-12-31 10:26:44 PM
fta "Just so your audience can brace themselves, the typical interest rates are in a range of 24 to 30 percent per annum,"

I'm sorry, but could you tell me once again why it's illegal to shoot bankers?
 
2010-12-31 10:27:37 PM
The private sector is always the most efficient and trust worthy way of getting anything done. ANYTHING. Just wait, I'm sure the invisible hand of the market will sort this out in no time.
 
2010-12-31 10:33:20 PM
Witness once again the all powerful destruction of greed.
 
2010-12-31 10:35:09 PM
Notabunny: I'm sorry, but could you tell me once again why it's illegal to shoot bankers?

Because the illusion of our strong financial system could be forever shattered. We can't have that now. Can we?
 
2010-12-31 10:35:39 PM
sparkeyjames: Witness once again the all powerful destruction of greed.

Wait that didn't come out as planned. Lets try it this way....

Witness the all powerful destructive force that is greed.

/better.
 
2010-12-31 10:36:30 PM
Is there any form of loading to poor people that doesn't end up like this?
 
2010-12-31 10:45:54 PM
2.bp.blogspot.com
 
2010-12-31 10:53:17 PM
Third world countries should nationalize their industry and kick out foreign companies. Their lives will still probably suck but it will be cheaper for them to have said shiatty life.
 
2010-12-31 10:55:36 PM
Clearly they're still too socialist to handle little loans, so capitalism has to weed them out and let only the strong survive.

/or some Republican shiat like that.
 
2010-12-31 10:57:05 PM
Wow, Big Corporations told me something was going to save the world, then it turned out Big Corporations lied? Really, you could have inferred how this one would turn out just from the word "finance" being part of it's name.
 
2010-12-31 10:59:11 PM
Barakku: Is there any form of loading to poor people that doesn't end up like this?

Yes, but it's rare. Most poor people aren't poor because of a restrictive system. If they were smart, they'd spend the loan money on some luggage and move to some place that didn't suck.
 
2010-12-31 11:00:00 PM
And some sharecroppers were/are beautiful
Link (new window) SFW

Sorry don't know how to add the small picture instead of the enbiggened one.
 
2010-12-31 11:00:38 PM
If you use organizations like Kiva.org this kind of stuff doesn't happen. It's a great way to contribute something to the 3rd world, and I like it much better than giving money to large aid organizations. In this way you pick the country, the person and for what expenses you want to help yourself, instead of giving it to some organization without knowing what they are going to do with it and how much money flows away to overhead or corrupt officials. One thing I take care of is that the loans should always be for a business purpose, not for personal expenses.

I have made 3 loans through kiva.org, and I can recommend anything who wants to donate something to 3rd world development to do the same. Don't expect to make a profit out of it, it's aid, not investment.
 
2010-12-31 11:02:44 PM
Giving loans with no business plan - they are doing it wrong. The loans should be for a specific purpose - buying a sewing machine, for example, or investing in gardening tools - that will result in increased income.
 
2010-12-31 11:06:26 PM
sparkeyjames: Witness the all powerful destructive force that is greed.

But, you see, greed also creates. It creates and destroys whole nations!

Greed is a tiny god. A god that punishes the weak.
 
2010-12-31 11:09:01 PM
Perhaps a bunch of rock stars could get together and sing about it. That's always effective.


www.hallandoates.de
 
2010-12-31 11:20:45 PM
Ever since banking was invented, the rule has been the same -- money costs money. These are high-risk, highly labor-intensive loans. Thus, they cost more.

The whole thing was a farce to begin with -- where was the money supposed to come from? The people with the money want a fair return for the risk. From a purely economic perspective the cost of the money in this case equals the risk. It's just like making a bet with a bookie.

For this thing to work the people with the money should have been willing to give it away. That doesn't make economic sense but it does make common sense and it's the only moral and ethical thing to do.
 
2010-12-31 11:21:59 PM
Somewhere in the bowels of Hell, Ayn Rand is smiling.
 
2010-12-31 11:22:04 PM
NewportBarGuy: This is why we can't have nice things.

Sadly true. Even if or when someone thinks up something revolutionary in its abilitlly to change the world for the better, someone's just going to come along and FARK it up by trying to make tons of money off it.
 
2010-12-31 11:27:15 PM
Kirk's_Toupee: Snarcoleptic_Hoosier: What's to repossess if the loan goes bad?

The warfare? The famine? The lack of sewer systems? The unfair economic practices supported by the first world?

Snarcoleptic_Hoosier: What's to repossess if the loan goes bad?

The warfare? The famine? The lack of sewer systems? The unfair economic practices supported by the first world?

free labor. get it.


Don't sweat it, they're working the USA towards that beautiful free labor goal. Any bets on how soon before it officially begins? I wonder what people will have to do for food? That is extra. Housing, forget about.
 
2010-12-31 11:30:20 PM
This should be easy-

use the gov't to threaten the entire financial industry with ruin if predatory loans continue.

No, that's not good for anyone. So you give them an out- step up the industry self policing such that the 'good' ones acquire, influence or drive off the 'bad' ones. Let them work out how to do this amongst themselves. Be ready to offer real rewards to those who crush 'worse' banks than themselves. The rewards have to be on the same scale as the profits associated with bad behavior for this to stick.

Then we'll have to harmonize these actions globally as with the major trade agreements.

I'm sure it would still take 30 years to accomplish but it's a way to let capitalism grow nicely.

The alternative is what we already have- teaching big parts of the world that capitalism is bad. Ultimately this just guarantees that capitalism will have to compete with other economic systems on a global scale.

/back to my beer and nonsense.
 
2010-12-31 11:37:40 PM
Ambivalence: NewportBarGuy: This is why we can't have nice things.

Sadly true. Even if or when someone thinks up something revolutionary in its abilitlly to change the world for the better, someone's just going to come along and FARK it up by trying to make tons of money off it.


So, uh, were these loans, or charity?
 
2010-12-31 11:40:41 PM
make me some tea: That's still happening here in the First World too, subby. They're called "payday loan companies".

This,this,this except the government didn't tell the people not to pay them. Those motherfarkers need outlawed. They prey on the neediest members of society and add no value to a community. It was a free for all in Kentucky until legislation was passed that put a maximum on how much you could borrow.
People who were in debt with 3-4 payday loans had them all come due at once. Here's just an example of the fees from a few companies in Kentucky

Rent A Center-They offered loans at rates like $500 and you pay back $590 in 30 days from when you borrowed. They have went out of business,are having their customers to pay it off 5% every month,while re borrowing at these incredibly high fees. It's farked up. If you don't pay them you could be sued which scares the shiat out of some people.

Check Into Cash-$100 payday advance with a $15 fee for 14 days = 391% APR

Cash Express-$200 payday advance with $3 the first time you borrow the loan and that's if you pay it within 14 days. If you don't you'll pay $230 for 30 days.


That's how you make people live paycheck to paycheck. That's how you create the working poor.
 
2010-12-31 11:49:37 PM
make me some tea: That's still happening here in the First World too, subby. They're called "payday loan companies".

ya we send the best practices over there...
 
2010-12-31 11:54:30 PM
 
2011-01-01 12:09:08 AM
Didn't Obama's mom do that sort of stuff? It completely explains his understanding of economics.
 
2011-01-01 12:17:31 AM
NewportBarGuy: Notabunny: I'm sorry, but could you tell me once again why it's illegal to shoot bankers?

Because the illusion of our strong financial system could be forever shattered. We can't have that now. Can we?


I think I could live with that.
 
2011-01-01 12:19:17 AM
make me some tea: That's still happening here in the First World too, subby. They're called "payday loan companies".

and rent-a-centers
 
2011-01-01 12:21:54 AM
Chimperror2: Didn't Obama's mom do that sort of stuff? It completely explains his understanding of economics.

there's always a risk of corruption in any system.
if you ever find one that provides incentive and total security let us know.
 
2011-01-01 12:38:22 AM
Wow. Greed. Is there anything it CAN'T Fark up?

to be fair though, what the article describes isn't really classic microfinance, which is usually community based, with successful Microfinancees funding the next wave of loans and lending their experience and expertise as well as their money. Instead these are predatory lenders filling the same Niche that microfinance was supposed to help.

I'm a peaceful, law-abiding man, but after seeing what one of these payday loan companies did to one of my employees who was desperate (I wish she'd asked me for an advance on her paycheck, but it apparently wasn't part of her life experience that you could even DO that), I gave some serious thought to how best to firebomb a business and make sure no one got hurt. (860% interest on her $1000 loan. works out to 70% PER MONTH or about 36% or $360 per paycheck.)
 
2011-01-01 12:43:36 AM
Um, agreed that this happens in the first world countries, too.

A shark loan in Australia goes for the maximum rate of 49.5% - the maximum permissible by law. Only a year or so before, shark loan companies could charge whatever they liked; in my case they were charging me 162% - One Hundred and Sixty-Two percent - per annum.

:-)
 
2011-01-01 12:48:33 AM
Wow, just when I thought my view of humanity couldn't get any lower.
 
2011-01-01 12:49:11 AM
All of you moaners who say that one should not take out loans that one can not pay back... here is one that is a little off tract.. how come so angry at that yet you pay an immediate 100% more for medical care in the U.S., compared to other developed countries, and don't blink and eye? Why do you settle for that crappy deal? You shouldn't be pointing fingers when your shait stinks.
 
2011-01-01 12:53:58 AM
Hollie Maea: It has been a long time since any bankers found their heads on pikes along the highway. So why wouldn't they do these sorts of things? They can so they do.

Because for a very long time, "Jew" and "banker" were roughly equivalent in the minds of the public at large and some guy in Germany ruined it for everyone.
 
2011-01-01 12:56:46 AM
sendtodave: sparkeyjames: Witness the all powerful destructive force that is greed.

But, you see, greed also creates. It creates and destroys whole nations!

Greed is a tiny god. A god that punishes the weak.


This is roughly true.

It also inspires a religion with high priests, dogma, and psychotic followers.

In this country they've labeled themselves "Republicans" for your convenience.

On of their high priests:
t3.gstatic.com
 
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